Solid Waste Draft Report - The Town of Silver City

includes SWSWA recycling pickup, additional service fees would be reduced by the
amount that is allocated for recycling. If more than one cart is used the monthly rate
increases by the cart fee plus the disposal fee and service fee according to the number
of times per week the carts are collected.
It is noted that the previous discussion on rates is based on the current landfill tipping
fee of $43 / ton. Rates are subject to periodic adjustments in response to tipping fee
increases and / or inflation.
4.4 Equipment Funding Strategy
Equipment for the automated refuse collection system will be acquired through a low –
interest loan. The table below (previously presented above as Table 1) details the
estimated cost of the collection equipment at the time this report was prepared.
Table 4: Estimated Equipment Costs
Equipment Quantity Cost per Unit Total Cost
Residential Carts (35, 65, and 95 4,200 $ 45 to 55 $ 203,600
gallon capacity)
Commercial Dumpsters (1 to 6 425 $ 320 to 630 $ 176,000
cubic yards in capacity)
Automated Residential Trucks 2 $ 175,000 $ 350,000
Front – Load Commercial Trucks 2 $ 150,000 (new) $ 225,000
& 75,000 (used)
Lift Truck (for container distribution 1 $ 45,000 $ 45,000
& bulky waste pickup)
Total Cost $ 999,600
The purchase of the solid waste collection equipment qualifies for the low – interest
loans available through the State of New Mexico’s Public Project Revolving Fund
(PPRF). The cost of these assets can be repaid through the rates over their useful life.
This approach allows the Town to preserve its cash position. Interest rates currently
available through the PPRF are around 3.5% for a 7 – year note. Silver City will borrow
an estimated $999,600 for the trucks and containers. Annual payments would be
around $160,000 or $12,700 per month.
The Town has set aside $600,000 for solid waste program capital acquisitions that will
be used to defray the annual payments on the equipment note. Revenue collected from
the monthly residential cart and commercial dumpster fees will also be applied to the
note. The table that follows details the payment schedule of the 7 – year note.
Draft Solid Waste Report for Silver City, NM Page 30 of 32
Zia Consultants / Bell & Associates